We consider an infinitely repeated reappointment game in a principal– agent relationship. Typical examples are voter–politician or government– public servant relationships. The agent chooses costly effort and enjoys be- ing in office until he is deselected. The principal observes a noisy signal of the agent’s effort and decides whether to reappoint the agent or not. We analyse the stationary Markovian equilibria of this game and examine the consequences of threshold contracts, which forbid reappointment if the prin- cipal’s utility is too low. We identify the circumstances under which such threshold contracts are welfare-improving or beneficial for the principalShow more